iShares Semiconductor ETF falls 29% into bear market on AI capex fears

The slide into bear-market territory for the iShares Semiconductor ETF comes after a summer peak that had priced in relentless AI-driven demand for chips. This week's moves mark a shift: Intel's 25% drop on weak guidance and Nvidia's 4% decline show that even firms at the center of the AI buildout are not immune to reassessments of spending plans.

Analysts tied the selloff to two concrete signals: Anthropic's S-1 filing showing decelerating growth, and reduced capex guidance from Microsoft and Alphabet. Together, these suggest investors are recalibrating expectations, wanting to see AI profits materialize before endorsing further spending. The Global X AI & Technology ETF's 4% weekly decline and its 15% gap from the summer peak reinforce that the caution extends beyond semiconductors.

With Google slipping another 1% after its worst-ever day Thursday, the pressure is broad. The question now is whether this repricing is a short-term correction or a longer reset in how the market values AI infrastructure spending. For now, the bear-market label on the chip ETF is a clear signal that the easy money phase of the AI trade has hit a rough patch.